A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their investment in a company’s equity. The dividends are generated from the company’s net profits. A dividend valve is determined on per share basis. They are often paid quarterly, but could be paid at times. Generally they are considered to be cash dividends and stock dividends.

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